Beruflich Dokumente
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SECTION 1. PURPOSE
.01 This revenue procedure amplifies and clarifies Rev. Proc. 2002-19,
the Internal Revenue Code. Rev. Proc. 2002-19 modifies Rev. Proc. 97-27,
1997-1 C.B. 680, and Rev. Proc. 2002-9, 2002-3 I.R.B. 327, (as modified and
481(a) adjustment period for net negative § 481(a) adjustments for a change
December 31, 2001. Since the issuance of Rev. Proc. 2002-19 on March 14,
2002, certain questions have arisen about the application of the new 1-year §
.02 This revenue procedure also clarifies and modifies Rev. Proc. 2002-9,
Proc. 2002-9 on January 7, 2002, the Internal Revenue Service has received
several comments regarding sections 4.01 and 4.02 of the Appendix of Rev.
comments, the Service is revising sections 4.01(1) through (4) and 4.02 of the
Appendix of Rev. Proc. 2002-9 to clarify the scope of these provisions and to add
filed under Rev. Proc. 97-27 for a year of change ending before December 31,
2001, and pending with the national office on March 14, 2002, to modify the
application (or, if the ruling letter has been issued since March 14, 2002, to
request a new ruling letter) to defer the year of change to the first taxable year
ending on or after December 31, 2001, in order to take advantage of the 1-year §
481(a) adjustment period. To do so, the taxpayer must notify the national office,
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prior to the later of December 13, 2002, or the issuance of the letter ruling
granting or denying the requested change, of its intent to defer the year of
change. The taxpayer must submit any additional information requested by the
national office.
2002-19 provides in part that the national office will require taxpayers with
method change applications under Rev. Proc. 97-27 for a year of change ending
on or after December 31, 2001, that are pending with the national office on
with the provisions of Rev. Proc. 2002-19 (namely, the 1-year § 481(a)
adjustment period). The national office will notify taxpayers if and when such
required.
December 31, 2001, and the agreement does not reflect a 1-year § 481(a)
adjustment period for a net negative § 481(a) adjustment for the change, the
taxpayer may elect to apply the 1-year § 481(a) adjustment period of Rev. Proc.
not want to apply the 1-year § 481(a) adjustment period, or does not comply with
the requirements of this section, then the adjustment period reflected in the
signed and returned the consent agreement, the taxpayer must write “Election to
Apply 1-Year Adjustment Period” at the top of the first page of a copy of the
consent agreement and attach the copy to either its timely filed original federal
income tax return or an amended federal income tax return, which should reflect
.03 Unsigned Consent Agreements. If the taxpayer has not yet signed
and returned the consent agreement, the taxpayer should contact the national
481(a) adjustment period for its net negative § 481(a) adjustment for the change.
of accounting under Rev. Proc. 99-49, 1999-2 C.B. 725, superseded by Rev.
Proc. 2002-9, or any other predecessor of Rev. Proc. 2002-9, for a taxable year
copy filed under Rev. Proc. 2002-9 for purposes of the transition rules set forth in
applications to change a method of accounting under Rev. Proc. 2002-9 (or any
adjustment period for net negative § 481(a) adjustments for taxable years ending
on or after December 31, 2001, and on or before April 30, 2002. Accordingly,
taxpayers that qualify for, and comply with, the provisions of this section may
request the application of the 4-year adjustment period for net negative § 481(a)
adjustments for taxable years to which the 1-year § 481(a) adjustment period
Rev. Proc. 2002-9 (or any predecessor) for a taxable year ending on or after
December 31, 2001, and on or before April 30, 2002, that desires a 4-year §
481(a) adjustment period for a net negative § 481(a) adjustment for the change
application) in duplicate under Rev. Proc. 2002-9 that clearly indicates that the
taxpayer elects the application of the 4-year § 481(a) adjustment period under
this section 5.
The original and copy of the application must be filed in accordance with
the timely duplicate filing requirements of section 6.02(3) of Rev. Proc. 2002-9.
return (or if an original return has already been filed, to an amended return),
which should reflect the 4-year adjustment period. An amended return must be
filed on or before December 13, 2002. The copy of an amended application must
be labeled “Substitute Application under Rev. Proc. 2002-XX,” and must be filed
with the national office no later than when the original return (or, if applicable, the
PROC. 2002-9
.01 This section 6 modifies sections 4.01(1) through 4.01(4) and 4.02 of
2002-17. The entire text of these provisions are set forth as a convenience.
However, changes to the existing text of these provisions are limited to sections
.02 Sections 4.01(1) through 4.01(4) of the Appendix of Rev. Proc. 2002-
the first taxable year that it does not qualify as a small reseller;
UNICAP method for both its production and resale activities to a permissible
qualifies to use a simplified resale method for both its production and resale
simplified resale method described in § 1.263A-3(d)(3) for both its production and
resale activities to a permissible UNICAP method for both its production and
resale activities in the first taxable year that it does not qualify to use a simplified
resale method for both its production and resale activities under § 1.263A-
3(a)(4);
the identification of costs subject to § 263A and including any special reseller
cost allocation rules) in any taxable year, other than the first taxable year, that it
does not qualify as a small reseller. However, this does not include a change for
APPENDIX is not subject to the scope limitations in section 4.02 of this revenue
procedure.
“(2) Definitions.
gross receipts for the three immediately preceding taxable years (or fewer, if the
taxpayer has not been in existence during the three preceding taxable years) do
personal property.
and a reseller.
includes the simplified service cost method using a labor-based allocation ratio (§
1.263A-1(h)) and the simplified resale method without an historic absorption ratio
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election (§ 1.263A-3(d)), but does not include any other reasonable allocation
for resale (§ 1.263A-1(g)(4)(ii)), the 1/3 - 2/3 rule to allocate labor costs of
take any applicable net positive § 481(a) adjustment into account ratably over the
same number of taxable years, not to exceed four, that the taxpayer used its
APPENDIX generally must taken any applicable net positive § 481(a) adjustment
into account ratably over four taxable years. See section 5.04(3) of this revenue
.03 Section 4.02 of the Appendix of Rev. Proc. 2002-9 is modified to read as
follows:
and reseller-producers.
costs subject to § 263A made in connection therewith. However, this does not
“additional § 263A costs” (or vice versa) under the simplified production method.
the simplified production method without the historic absorption ratio election (§
1.263A-2(b)), but does not include any other reasonable allocation method within
application with the national office for change in method of accounting described
in the APPENDIX of Rev. Proc. 2002-9 for a year of change for which Rev. Proc.
2002-9 is effective, and the application is pending with the national office on
January 7, 2002, the taxpayer may instead make the change under Rev. Proc.
2002-9, provided that the taxpayer notifies the national office of its intent to do so
prior to the later of February 15, 2002, or the issuance of the letter ruling granting
change under Rev. Proc. 2002-9, section 13.02 requires the taxpayer to make
provisions of Rev. Proc. 2002-9. In some cases, the national office retains the
office returns the application to the taxpayer, and the taxpayer makes the
office.
converted to applications under Rev. Proc. 2002-9 if the taxpayer submits the
the Service’s first request for such representations. Applications that are
the national office the application with the appropriate modifications within 30
days after the Service returns the application to the taxpayer. Whether the
national office retains or returns the application, the date on which the taxpayer
originally filed the application with the national office is treated as the date on
which the application under Rev. Proc. 2002-9 is filed with the national office for
purposes of that revenue procedure. Taxpayers using the transition rule are
reminded to attach a copy of the modified application to their federal income tax
return for the year of change. See section 6.02(3) of Rev. Proc. 2002-9.